Did you know that as the owner of apartments, you can issue a rental invoice for temporary housing to companies to provide accommodation services?
Remember that companies that send their employees to and from different parts of Spain and the world need to accommodate them in comfortable and furnished homes.
This means that as the owner of one or several residential properties, you have the possibility to rent out those spaces to secure and reliable companies that will provide you with a good economic return.
However, you may think that issuing an invoice is a limitation because you are an individual.
But that’s not the case.
You can invoice companies as an individual without any inconvenience.
And today, we want to show you how to issue a rental invoice for housing to companies, what elements you should include in it, how it benefits you, and even provide a simple template to show you how it works.
But before that…
Why do companies need an invoice from an individual?
Rental invoices for housing are important for companies because they allow them to keep an accounting record of their expenses in order to declare them each year.
It is worth noting that companies, as tenants, will accommodate their employees in your temporary homes for an agreed period in the contract.
This means that it is mandatory for them to receive invoices that confirm the rental of your services and allow them to record their financial transactions.
In short, an invoice from an individual to companies is important because it provides them with proof of payment for their transactions and expenses, enabling them to declare and account for them internally.
It is key to emphasize that you can issue this type of invoice as an individual.
Let’s see what information your invoice should include.
What information should a housing rental invoice include?
Remember that an invoice is a legal document that will be presented to government authorities to verify and pay taxes, so it must be genuine, accurate, truthful, and not contain any fraudulent items.
This proof of purchase and sale transactions should include the following information:
- Invoice control number, which is the consecutive number of the invoice. There should never be two invoices with the same control number.
- Date of invoice issuance.
- Date of the transaction, if different from the invoice issuance date.
- Professional details of the client, in this case, the company, such as: company name, tax identification number (NIF), business name, address, and contact information.
- Details of the property owner (your details), such as: full name, national identification number (ID), business name or legal entity, address, telephone number, and email.
- Precise description of the service provided to the company, which is the rental of the property.
- If your housing rental is not exempt from taxes, you must include the applicable tax rate on the invoice and indicate “Tax included.”
- Total cost of the invoice, at the end.
As you can see, a housing rental invoice does not require too much information, so you can be confident that you have what you need to issue them without any problems.
Which tax applies to housing rental invoices?
The tax that will or will not be included in your housing rental invoice depends on the region within the Spanish territory where you are located.
For example:
- VAT (IVA) is paid if you are in the mainland or the Balearic Islands.
- Special Tax on Certain Means of Production (IPSI) is paid if you are in Melilla or Ceuta.
- General Indirect Canary Islands Tax (IGIC) applies to properties located in the Canary Islands.
To give you a better understanding, let’s suppose you are in Barcelona and you want to rent a property to a company to accommodate an employee and their family.
In this case, the applicable tax based on the region is VAT (IVA).
However, there are three types of VAT rates available:
- 21% VAT, which is the general VAT rate applied to any type of service or product.
- 10% VAT, which is a reduced VAT rate applied to tourist rentals and other service companies in the hotel industry, such as property cleaning, for example.
- Exempt VAT. Individuals who decide to rent temporary housing to companies for the purpose of accommodating employees are exempt from paying VAT, IPSI, or IGIC taxes when the following requirements are met:
- Personal data of the workers to be accommodated are identified.
- Subleasing or assignment of the property is not allowed.
- The objective and purpose of the contract is the rental of the property.
It is important to note that lessors who issue a housing rental invoice and are exempt from VAT must pay the Property Transfer Tax (Impuesto de Transmisiones Patrimoniales or ITP), which is a mandatory tax provision.
Legal entities that receive a housing rental invoice for their employees are exempt from paying Personal Income Tax (Impuesto sobre la Renta de las Personas Físicas or IRPF), as indicated in Article 75, 3G of the Personal Income Tax Regulations.
How to declare VAT for temporary accommodation invoices?
We will explain how you should declare the corresponding VAT based on your conditions:
- If you need to declare either 21% VAT or 10% VAT, you must use a quarterly VAT declaration, as you need to be registered.
- If you need to declare exempt VAT, you should use an Annual Income Tax Return.
As a property owner, you need to declare Personal Income Tax (model 100) as rental income from real estate.
Tax benefits of renting properties to companies
Private property owners who rent out their apartments and properties to companies enjoy a wide range of benefits, more so than if they were renting to other individuals.
Some of these benefits include:
- You won’t have to stress about tenants not paying rent, as companies are usually responsible in fulfilling their obligations.
- You are exempt from VAT.
- You can deduct any expenses related to the housing rental invoice, such as water, electricity, gas services, taxes, bank amortizations, and interest.
Template for a private housing rental invoice
A template for a private housing rental invoice could be as follows:
